The recent resiliency in the notes despite a solid run in the S&P 500 has been a welcome to surprise. Today, we have seen a high in the Sep notes of 139-13 and a low of 139-035 and we are currently trading at 139.09. Economic numbers are starting to weaken a bit after last month’s very strong numbers across the board, especially after the employment numbers. In my opinion, interest rats have two things going for them. The first being while rates in the U.S. are low, they are still comparatively better than European rates, which are still negative, so you have overseas investors looking at U.S. notes. The second reason is unemployment benefits are set to cease at the end of July and we will see a slowing in spending.

10-Year Note Sep ’20 Daily Chart
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Greg Perlin

Senior Market Strategist
Greg is a former Chicago Board of Trade member. He was an independent floor trader, pit broker and floor broker with Cantor Fitzgerald. Some of his clients included traders from Morgan Stanley and Lehman Brothers. He also acted in the capacity of desk manager for the morning trade desk. Greg was part of the elite Lind Plus Division for 10 years before joining RJO Futures in 2011.
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